Nissan Reports First Half Results for FY2021

What interests companies the most? Unequivocally, it’s profitability which interests small firms or large corporates the most. However, several transnational companies were grappling with the preposterous times due to the pandemic and their future strategies and plans took a lot of beating. Conspicuously, their profitability was endangered and automobile firms in particular had to account colossal losses with some going kaput. However, Nissan which has been seeing a grave scenario for such a long time now has just published its first-half results for Fiscal Year 2021 and it paints a great present along with a sanguine future as well. They didn’t have to be reticent in unleashing the figures going by how huge and better they were compared to the previous year’s first-half results. 

Their accumulated net earnings for the six-month period between April and September was an astounding 3.95-trillion yen, combined operating profit was 139.1-billion yen and operating profit margin was 3.5-percent Their net profit which was accounted this fiscal after a series of loss-bearing fiscals was a reassuring 168.6-billion yen.

Such result was the aftereffect of encouraging market influences contributed by better quality of its sales and financial discipline. An integral role has been played by effective enforcement of the Nissan NEXT transformation plan through which it aims to focus on electric mobility and adopt sustainable practices. Interesting to note is that the sales volume didn’t breach the brand’s anticipation due to the semi-conductor supply shortage along with the global chip shortage, the selling expenses and fixed costs decreased dramatically for the brand resulting in higher profit per unit. 

The company’s net revenue for FY2021 was ahead of the FY2020 revenue by 854.3 points. Its ordinary profit of the current year exceeded the ordinary profit of the preceding year by a remarkable 416.3 points. These figures are what its joint-venture operation in China has to reveal.

The operating profit of its JV in China stood at 199.7-billion yen which is equal to an operating margin of 4.3%. Its net profit was 168.6-billion yen. Its second-quarter financial highlights telltales that its consolidated operating profit was 63.4-billion yen and net profit was 54.1 billion yen in what was a challenging year not only for the company, but for the automotive industry, holistically. 

However, Nissan expects sales volume to dwindle by 13.6% over what was appraised earlier to 3.8 million units. Notwithstanding the semi-conductor supply shortage and adversities of ever-increasing input prices, the company has overhauled its full-year outlook as it strives to better its quality of sales and focus on its new product portfolio.

For the entire year, Nissan prognosts a net revenue of 8.8-trillion yen, an operating profit of 180-billion yen and a resultant gain of 180-billion yen which is a whole lot more than what was expected. These estimations have been sent to the Tokyo Stock Exchange to parade the figures. 

Nissan CEO Makoto Uchida said, “Our strong results are the outcome of diligent financial management, improved quality of sales and continuing product offensive. This has helped us withstand several headwinds. As we have revised our fiscal-year 2021 outlook, we are confident to exceed 2% operating margin 3 for the year, which is one of the milestones of the Nissan NEXT transformation plan. We will continue to firmly pursue Nissan NEXT globally to achieve the plan's target of a 5% operating margin 3 in fiscal year 2023.”